The European Neighbourhood Policy was conceived in 2004 after the EU welcomed 10 new member states into its ranks. It was designed to prevent the emergence of dividing lines and strengthen ties – both politically and economically – between the EU and its neighbouring countries. Key aspects of the initiative are the promotion of democracy, the rule of law, respect for human rights, and social cohesion in the individual partner countries.

The Economic Effects of this European Neighbourhood and Partnership Instrument

This programme sustains and builds upon what is an already valuable and mutually beneficial relationship. In 2011, total trade between the EU and its European Neighbourhood Policy partners came in at € 230 billion. This substantial worth was created through the progressive effects of EU Association Agreements (AA). These deals consist of bilateral agreements designed to help achieve mutual goals – all within the framework of the European Neighbourhood Policy. Existing AAs, such as the EU-Ukraine Association Agreement, have already reaped tangible economic results. While Ukraine’s level of export decreased in 2014, its exports to the EU remained stable. Promoting trade through reduced import tariffs is one way the EU plans to overcome the crisis, so, a bigger trade network will have positive effects.

Near and Far: a Comprehensive Look at the European Neighbourhood Policy

Here at GED, we look at the bigger picture when it comes to today’s world economy. Our team conducts studies and analyses into the cause and effect of events across the globe. We hope that by revealing the relationships and interdependencies of global economic dynamics, we can assess their consequences at an economic and social level.

In our study, “Costs and benefits of a United Kingdom exit from the European Union”, we showed that all 28 member states would suffer lower economic growth if UK citizens vote yes to a Brexit in the upcoming referendum. What this could mean for the EU and its European Neighbourhood Policy partners is unclear. If the EU decides to look internally for solutions, then a weakened EU-Morocco Association Agreement, for example, could contribute to instability in the region directly south of the EU. Nevertheless, avoiding a Brexit and maintaining a strong European Neighbourhood Policy can both be influenced if the EU were to ease the current fiscal and debt crisis. Our study “Surviving a Debt Crisis”, demonstrates how the Latin American debt crises of 1982-1989 and 2011-2002 offer valuable lessons for the Eurozone leaders today.

GED findings are always made accessible in a range of formats, both interactive, and in-depth. Explore our website for more new perspectives on global economic dynamics today.

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